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DAVID RANKIN

David Rankin had never been on a racecourse until he was 45. Yet he recently stepped down after five years as chairman of the New Zealand Metropolitan Trotting Club having directed a transformation which makes Addington the number one racing complex in New Zealand by asset strength.

Typically he gives the credit to his Board and executives. "It's not about me," he says. "It's about the processes we put in place and the people who carried these out. It was giving the Club a full business philosophy which turned things around."

Rankin remains on the Addington Raceway Board but retired from the chairman position for health reasons. "Last April out of the blue I suddenly developed problems with an eye closing of its own volition. Then with both eyes open I had trouble focussing. While the cause of that was being established I had to undergo an operation to relieve excessive levels of calcium caused by a thyroid problem. I was found to have myasthenia, a neuro muscular weakness. I could do nothing physical at all. It could be a real effort for my neck to hold my head upright. Treatment has stabilised the problem and it can go into remission for long periods so here's hoping."

He has a strong accountancy and business (managing-director Livingstone Real Estate) background, and is a son of notable Canterbury rugby coach of a former era, Jack Rankin. But his entry into both racing and administration was almost by chance. "Mike Grainger was a school friend of mine and he got some of us in to a syndicate. There were 10 originally but the first horse didn't make it so it was down to five by the time we tried our second horse. That was Straven which won five and had eight placings from 13 starts before we sold him to America. It was a great start for me. I was at a (Boys High School) reunion when Jim McGee sitting next to me suggested I should join up at Addington. After a year on the committee I stood for the Board and three years later became chairman (2008) on the death of John Penney. So it was fast tracking all round."

Rankin had looked at the philosophy behind the Addington business and didn't like what he saw. "We had historically spent nearly everything we earned. We were often posting profits before depreciation which are not real profits at all because it is not money in the hand to re-invest. When we lost the industry facilities funding through the Racing Board we were in trouble. We were not reinvesting enough in our core business. It got to the stage that when we went into a joint venture with the industrial complex we got $2m and had to use it all to pay off debt. We had major cash difficulties in 2008 and when the tax cuts came into force ours went largely into stakes. It was not sustainable."

"We had some tough years. I refused to present a report which posted profits before depreciation. In 2012 we wrote off $840,000 in depreciation to get everything back on track and still had a positive cash flow of $1.8m - enough profit to build the new bar complex out of income."

The club targeted the right people to bring about major change. "Shane Gloury did an outstanding job as a change manager. He came from Melbourne and took on the challenge to alter the culture of the place. It was a tough assignment especially given the challenge of the horse barn situation which wasn't good and greeted him on arrival. Our Events (catering) operation, for example, was to some extent stifled by tradition. There was a resistance to change. Now we have enthusiastic Events leaders coming up with their own innovations to improve the product. That was a huge change for us and a credit to Shane."

"You must remember that racing is only 47 per cent of ourincome now. We have people wanting to come to Addington because of the catering and it has boosted our income. To survive from a racing aspect we must grow in other areas. It is a true success story. This was all done without significant staff changes and when Shane had to leave us Dean McKenzie came and has been a stunning CEO. Dean is an experienced delegator, prepares in great detail and empowers the staff to come up with their own thoughts and feelings. He utilises their skills. That gives them enthusiasm and pride in achievement. Money can't buy that."

"Brian Rabbitt has played his part on the racing side too. Our average field size at this year's Cup week meetings lifted on last year while the national average went down. It is essential we have more horses racing here and the programming of events and innovations like rewarding owners of horses who support our meetings (Met Multiplier) which has made that difference. The success also reflects the value in having an expert accounting and administrative figure at the top - one who keeps the focus where it should be.

"I don't know a lot about racing. I have never pretended that I did. But that wasn't really what we needed at the time. I have great faith in our succession plan. Barry Dent (new chairman) has my full confidence. Behind him is Brent Smith who was not really into racing either and was a bit reluctant to come on board because of time constraints. I told him not to worry about coming to the races every week, it was his financial skills we needed. Now Brent is as keen on the racing as anyone. Recruiting these sort of people has been satisfying."

Rankin makes the point that Addington is now the most valuable racing centre in New Zealand. "We have $87m in assets. Ellerslie by comparison has $61m and Alexandra Park about $47m. It is pleasing to see that Alexandra Park is now following our move to use assets for greater income because I know they will make a lot of progress from it. The old idea when you got into trouble was to sell something. We are currently getting around $1.5m profit from our business centre enterprise and that will only grow. We have two blocks yet to develop one of 4000 sq m and one of 2000 sq m and that is the future. And of course we have income from the Twigger Stand leases as well."

While Rankin acknowledges the earthquakes have been a blessing for Addington Raceway in a number of respects, he resists the idea they are the reason for the Club's success. "We were paid $11m for the public stand. The Racing Board took $6.1 of that for the barn and we have the other $5m still invested. We haven't used it. Our gain is that there are more people in the area now."

Rankin's real estate expertise enables him to predict the future of Addington's non racing situation. "If you drew a line around a 3km radius from Riccarton Mall, for example, spending there is estimated at around $1.2b a year, the largest amongst suburban malls. So increases in people in a 3km radius around Addington now plus our ace in the hole, parking, means initiatives like our new bar complex are virtually guaranteed to succeed. The bar is already running ahead of budget."

As a result Rankin dismisses any possibility of racing moving from Addington in the forseeable future. "It would cost us $60m to build a new complex from scratch and the figures from racing income just don't add up. The Sydney and Melbourne Clubs who moved out of the city got a lot of money but are struggling to get a business income over 7 days off the ground. You can build a hotel but will people want to stay in it out there? And that land would have been even more valuable in a few years. Our great advantage is our position. Why would you consider giving that up?" The latest boost is the decision of the Canterbury Rugby Union to lease the old administration office at Addington for its offices meaning the admintistrative staff will all move into the present racenight administration area.

Considering David Rankin came to power on the edge of a severe economic downturn his time in charge can only be described as a huge success. He is confident that will continue because of the processes put in place by he and his team. He gives a lot of credit to his wife, Kath. "She is brilliant with people and I am not. She committed to the challenge and has been a great asset to me in that respect. She remembers names and takes a real interest in the people she meets. I am more reserved and organisation is more my thing. We make a great team."

May we see the Rankin name in national administration over time? "I have not thought about seeking that but I would not count it out all going well on the health front. I love a challenge. At the moment I am just looking for a bit more luck with my horses. The public makes them favourite a lot but they always seem to run second." That changed at Timaru on Saturday when Nigel McGrath produced another winner for his patron. It may have been appropriate that its name was All Cash and Burning followed the next day at Motukarara.

Credit: David McCarthy writing in HRWeekly 27Nov13

The New Zealand Metropolitan Trotting Club (The Met) announced today that the 2011 Christchurch Casino Inter Dominion Championships would be run by The Met at Alexandra Park in Auckland on Friday 25 March, Friday 1 April and the Grand Final Meeting on Friday 8th April.

In announcing the change, Chairman David Rankin advised that a key consideration for The Met was the safety of patrons and staff at the Addington Raceway venue in Christchurch. “An Engineer’s report on key building structures at Addington received yesterday reveals that our large Public Stand has some structural issues which cannot be addressed in the short time frame available. Similarly the Metropolitan Stand (Members) needs to have some glazing repairs and there is some non structural damage to end infill panels which need to be replaced for safety reasons. The glazing is expected to be completed by 25 March and the infill panels can be shored up temporarily to allow use of this stand. However, we are working within a tight time frame for which the risk of completion is too great. The older Twiggers Stand and the new stables are not affected.”

“The transfer to Auckland will to a large degree mitigate our financial losses. The Auckland Trotting Club, not wanting to take advantage of our plight are allowing us to be there as a “tenant club” with no rental and contributing other net revenues to us as their way of supporting harness racing in Canterbury and the financial turmoil the earthquakes have created for us in Christchurch. We are gratified by their generous support. Harness Racing New Zealand has been hugely supportive in ensuring the Inter Dominions will be a success financially for The Met and we are extremely grateful to CEO Edward Rennell and his Board.

Practically, there was no other decision available to us, but nevertheless we feel strongly for the Canterbury Trainers, drivers, owners, our members and the Public who were looking forward to this event in Christchurch and gave us every encouragement to continue at all costs.”

“Also, we cannot ignore the Christchurch Community which is reeling as a result of the major Earthquake on 22 February and it seems inappropriate for us to hold a Harness Racing Carnival at a time when so many people are suffering. We appreciate the Minister for Civil Defence (and also Minister for Racing) John Carter and the Christchurch City Council were not prepared to direct us to not hold the event, despite the fact they doubted whether the Christchurch infrastructure could cope.”

The Met CEO, Shane Gloury said he was “absolutely gutted” he and his team could not deliver the Inter Dominions to Christchurch people and the local industry. “Our team at The Met have been working hard over the last two years to have the very best horses from Australia and New Zealand race in Canterbury as part of a magnificent Carnival. Unfortunately we are not able to showcase this product in Canterbury due to the events of the past 8 days. However we will still be able to conduct a great Carnival up in Auckland.”

Over 50% of the horses nominated for the Series are trained in Canterbury and Gloury said that he was conscious of the additional costs associated with campaigning horses in the North Island for a two week period that were not originally budgeted for. “We are looking to ameliorating that in some way, but don’t have much in the resource department to achieve what we would like to do” he added.

“The Met has had two very tough years financially and the financial implications of the business downturn and the earthquakes have needed careful management” said Rankin.

“We understand there are those from outside of Christchurch that would have liked to attend an Inter Dominion Series in Christchurch, but are fearful following the recent earthquakes.”

Other feature races that were due to be run as part of the Inter Dominion Carnival in Christchurch will not be transferred to Auckland but will be run in Canterbury at later dates to be announced over the next few days.

The Met will be making necessary arrangements with sponsors, supporters, tour groups, members, industry participants and others over the next few days to ensure that a successful outcome and bumper Inter Dominion Carnival is conducted in Auckland between 25 March and 8 April.



Credit: Shane Gloury 2 Mar 2011

NEW STABLE BLOCK OPENING 15 MAY 09

The new stabling complex at Addington Raceway, nestled in front and to the side of the Twiggers Stand, was opened to wide acclaim last Friday night.

The occasion was attended by senior administrators, club officials, horsemen and in the absence of the Minister of Racing, John Carter, who was detained in Wellington, the opening was performed by Pat O'Brien, the Chairman of Harness Racing New Zealand. From there on and throughout the night, there was heavy traffic through the building, all with favourable comment on the facility that is bright, roomy, quiet and convenient.

David Rankin, Chairman of the NZ Metropolitan Trotting Club, said the $7m state of the art complex "is without peer in the Southern Hemisphere. For decades our horsemen and women have operated from open facilities at the far end of the track in all kinds of weather, and have dreamed of the day they would get fully enclosed stables. As from today, all this changes. With the stables being so close to the Stewards' Stand, we will have a significantly enhanced team environment for owners, trainers, drivers, stipendiary stewards, vets, Addington staff, Board and Committee."

He said Addington is the most utilised track in New Zealand, with 57 racemeetings, 24 trials and workout meetings programmed for the next 12 months, in addition to about 73 greyhound meetings. Rankin said there may be some who question the financial wisdom of building them at all. "My answer to any critics is this: the location of the stables here has not only brought our stakeholders closer together, but left the old stabling area available for further development." He said there was over two hectares that can be redeveloped for club use and into income producing assets in a similar manner to the two-thirds share the club has in the joint venture along the back straight.

Rankin said there has been no detrimental affect on racing stakes as a result of increased costs for the stables. "The building of the new facility has not been without its share of challenges. The tight timeframe - between starting after the 2007 NZ Cup and having the roof deck finished in time for use a year later - meant that additional costs had to be incurred in meeting the conditions of Council which were not known at the start of construction. Then, in January 2009, the main building contractor experienced financial problems, ceased work, and was subsequently placed in liquidation."

The finished product is a high-quality complex of 156 stalls. The club is seeking sponsorship of each stall, which will be recognised by a plaque. They cost $500 for three years, or $3,000 for life. Already, one third have been sold.

Rankin said there are more plans ahead, including artificial grass on the stables deck, an upgrade of the ground floor of the Members stand, an upgrade of the area in front of the Public stand, modernising and landscaping the carparking and drive areas, and redevelopment of the Twiggers and Public stands.

Rankin acknowledged the work and efforts of numerous people and companies, including project managers, contractors, horsemen, staff and in particular the club's late Chairman John Penney who was a key instigator in the project.

Credit: Mike Grainger writing in HR Weekly 20May09

SHANE GLOURY

Shane Cloury has been appointed to the position of Chief Executive of Addington Raceway Ltd (including the NZ Metropolitan Trotting Club Inc).

Gloury is a qualified chartered accountant and is presently the General Manager - Strategic Planning and Development, for Harness Racing Victoria. He has previously held the positions of General Manager Business, Assistant Manager Finance and Financial/Management Accountant over a period of 10 years.

"We are delighted to appoint someone of such high calibre with not only the experience in the racing industry, but also in finance and business development," said David Rankin, Chairman of Addington Raceway Ltd and NZMTC.

"We believe his skills in strategic planning, marketing and development of the business case for the new Melton racing and entertainment facility, which will become the home of harness racing in Victoria next year, will all be of great benefit as we seek to further enhance and develop Addington Raceway.

Credit: HRWeekly 3Dec08